No Will or Trust:
So, what does that mean or what happens if you die without any estate planning in place? Well, when that person passes a judge and lawyer(s) who know nothing about that person or their family will determine who receives what assets and who will raise their children. Obviously not a situation any of us would want for our family – complete strangers making decisions over what matters most to use without any input or guidance.
Wills:
A will provides you with a little more control – the ability to determine who raises your children and you are able to dictate somewhat who receives what assets. One of largest downfall of a will, in my opinion, is that your family is forced to go through probate.
Trusts:
A revocable living trust is a legal arrangement that allows an individual (the grantor or settlor) to place their assets into a trust during their lifetime. The trust is “revocable” because the grantor retains the right to make changes, amend, or revoke the trust at any time during their lifetime, as long as they are mentally competent.
Frequently Asked Questions
But do I really need a lawyer?
Absolutely fair question. Sometimes people are tempted to go online, watch a few YouTube videos or even try to use ChatGTP and create their own wills Or trusts,.
Did you know that a disclaimer in Legal Zoom states that 80% of people who fill in blank forms to create legal documents do so incorrectly? Many companies that provide “fill in the blank” wills and trusts have lawyers; however, they are companies and not law firms, most importantly they are not your law firm. The lawyers who work for do-it-yourself on-line will drafting companies do not have privity of contract with you; therefore, they have no liability for giving you bad advice. Although it may sound self-serving, at the end of the day a software algorithm cannot substitute the professional judgment of a lawyer who has a duty and obligation to you.
But I’m young, do I really need an estate plan?
This is probably easiest answered with a short story. A little while ago my wife and I were up early on a Saturday morning and on our way to the airport for a short getaway for just the two of us. We had spent the night at my mom’s, leaving our daughter in her care while we would be away. As we neared DFW airport I saw a pickup truck in my rearview mirror traveling at an excessive speed, swerving in and out of traffic with no regard for anyone’s safety. I admittedly breathed a sigh of relief as he passed us, but knew it was only a matter of time before he struck someone. Before my wife was able to get her phone out of her purse to call 911 the truck violently crashed into the car just in front of us sending debris everywhere. We were able stop and render aid to both parties, the driver of the truck being pinned by his engine block, but reeking of alcohol and the poor woman who was simply on her way to work that he almost killed.
The lesson here is that yes, you may be young, healthy and believe you have a long life ahead of you, but accidents happen, people are killed every day and not one of them woke up that morning thinking today would be their last day on earth.